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Corporate Information

 
Press Release (Aug 08,2005)
TEPCO and Tokyo Gas Announce LNG Sales Agreement on Darwin LNG Project
LNG Purchase Agreement Signed for LNG Project in Darwin
- Creates LNG value chain from gas field development and production to
in-company consumption of produced gas -

                                                          August 8, 2005
                                                Tokyo Electric Power Co.
                                                     Tokyo Gas Co., Ltd.

Today Tokyo Electric Power Co. (TEPCO) and Tokyo Gas Co., Ltd. signed a
LNG purchase agreement with Darwin LNG Pty Ltd., the LNG seller, for the
LNG project in Darwin, Northern Territory, Australia. The contract has
been in negotiation based on a basic agreement (Heads of Agreement:HOA)
signed on March 11th, 2002.

The agreement is flexible and economical, permitting expansion of LNG
transportation destinations beyond the companies' terminals under certain
conditions and allowing FOB (Free on Board) as the delivery condition.
This will allow the companies to adapt to changes in the business
environment such as deregulations in the energy market. Contract volume
is reported at 2 million ton per year (average year) for TEPCO and
1 million ton per year (average year) for Tokyo Gas Co., Ltd.  Both
companies will arrange for transport using their own LNG ships. 

Both companies are participants in the Darwin LNG Project, which includes
gas field development and production operations, gas pipeline business
and gas liquefying plant operations, and believe that consuming LNG
produced by gas fields (Bayu-Undan Gas Field) in this project will enable
them to construct an integrated LNG value chain, which will make
acquisition of fuel and raw materials more stable and economical.

Parties Concerned: Seller: Darwin LNG Pty Ltd.
                   Buyer: TEPCO; Tokyo Gas Co., Ltd.
Contract Volume: TEPCO: 2 million ton / year
                 Tokyo Gas Co., Ltd.: 1 million ton /year
Contract Length: 17 years starting January, 2006
Delivery Format: FOB (Both companies arrange and transport LNG ships)

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